A limited liability company’s operating agreement or company agreement is similar to a corporation’s shareholder agreement, and provides for the management of the LLC, and the rights and duties of the owners of the LLC (members) and the managers of the LLC, if any.

Specifically, the LLC operating agreement should address the company’s finances, capital contributions, percentages of ownership, voting rights, meetings, notices, buyouts, distribution of profits and losses, officers, and other matters. Limited liability companies generally may be managed by the members or by appointed or elected managers.

In Arkansas, a limited liability company (LLC) is governed by its operating agreement, which is a key document outlining the management structure and the rights and duties of its members and managers. The operating agreement is akin to a corporation's shareholder agreement. Arkansas law does not require an LLC to have an operating agreement, but it is highly advisable to have one to ensure clear guidelines for the operation of the company. The operating agreement typically covers financial matters, capital contributions, ownership percentages, voting rights, procedures for meetings and notices, buyout provisions, and the distribution of profits and losses. It may also detail the appointment of officers and other operational aspects. LLCs in Arkansas can be member-managed or manager-managed, and the operating agreement should clearly state the management structure chosen. Without an operating agreement, the default provisions of the Arkansas LLC Act will apply, which may not be suitable for all LLCs.